by The Tax Place | May 6, 2020 | Tax Tips and News
Some low-income Americans may need to report EIP-qualifying information to the IRS.
With the dependent-reporting deadline for non-filers who are automatically receiving their Economic Impact Payment passed, the Internal Revenue Service reminded low-income Americans who don’t normally file a tax return that they are probably eligible for a CARES Act-authorized payment.
While non-filers who receive certain government benefits will automatically receive an EIP, many low-income Americans who have not filed a tax return in the past two years will need to provide the IRS with EIP-qualifying information. To expedite the process, the IRS suggested they use the Non-Filers: Enter Payment Info Here tool on IRS.gov.
“The Non-Filers tool is for married couples with incomes below $24,400 or single people with income below $12,200,” the agency explained in the release. “This includes couples and individuals who are homeless. Usually, married couples qualify to receive $2,400 while single people qualify to get $1,200. People with dependents under 17 can get up to an additional $500 for each child.”
Before using Non-Filers: Enter Payment Info Here, the IRS says that users need to have some “basic information” handy. The “Non-Filers: Enter Payment Info Here” page on IRS.gov has a more complete list:
- Full name, current mailing address and an email address
- Date of birth and valid Social Security number
- Bank account number, type and routing number, if you have one
- Identity Protection Personal Identification Number (IP PIN) you received from the IRS earlier this year, if you have one
- Driver’s license or state-issued ID, if you have one
- For each qualifying child during 2019: name, Social Security number, or Adoption Taxpayer Identification Number and their relationship to you or your spouse
However, the IRS closed their press release by detailing who should not use the Non-Filers tool.
Don’t use Non-Filers: Enter Payment Info Here if you filed a tax year 2018 or 2019 return!
The IRS stressed that taxpayers who recently filed a return should not use Non-Filers: Enter Payment Info Here. Since the AGI listed on a tax return is generally how the agency determines eligibility for EIP, there is no need for filers to report that information again.
The IRS also noted that those who need to file a tax return to qualify for certain tax credits should not use the reporting tool. In those cases, the IRS says it’s better to just file a tax return.
Finally, Americans who have been claimed as a dependent by another filer are not be eligible to receive an Economic Impact Payment.
For more information about Economic Impact Payments, visit the Economic Impact Payment Information Center on IRS.gov.
Source: COVID Tax Tip 2020-51; “Non-Filers: Enter Payment Info Here”
– Story provided by TaxingSubjects.com
by The Tax Place | May 5, 2020 | Tax Tips and News
May 5, 2020, is the EIP-reporting deadline for SSI and VA beneficiaries with qualifying dependents.
The Internal Revenue Service today issued a “plus $500” last call for Supplemental Security Income and Veterans Affairs beneficiaries who can claim dependents. After May 5, they will not be able to use the Non-Filers: Enter Payment Info Here tool on IRS.gov to report qualifying children, possibly delaying the dependent-related portion of their Economic Impact Payment until next year.
The reason SSI and VA beneficiaries need to report qualifying dependents by tomorrow is because their payments are about to be sent by the Treasury. “In order to add the $500-per-eligible-child amount to these [$1,200] payments, the IRS needs the dependent information before the payments are issued,” the IRS explained in the press release. “Otherwise, their payment at this time will be $1,200 and, by law, the additional $500 per eligible child amount will be paid in association with a return filing for tax year 2020.”
How do SSI and VA beneficiaries report dependents on IRS.gov?
SSI and VA beneficiaries can access the reporting tool by going to the IRS.gov homepage and clicking the Non-Filers: Enter Payment Info Here link in the upper left-hand corner of the page. When the Non-Filers page loads, users might have to scroll down to find the blue Enter your information button (Ingrese su información for those who prefer Spanish). They just need to click the button matching their language preference and follow the on-screen instructions.
How will SSI and VA beneficiaries receive their Economic Impact Payment?
According to the IRS release, Economic Impact Payments for SSI and VA beneficiaries will use the same method currently designated for their government benefits. Generally, they will receive the payment in one of three ways:
- Direct deposit
- Direct Express debit card
- Paper check
Remember, the language in the IRS release seems to indicate that reporting dependents after the May 5 deadline will result in receiving the rest of the EIP with next year’s tax refund. If an SSI or VA beneficiary would prefer to receive all of their payment at one time, they need to report all eligible dependents as soon as possible.
Source: COVID Tax Tip 2020-50
– Story provided by TaxingSubjects.com
by The Tax Place | May 1, 2020 | Tax Tips and News
The Internal Revenue Service says it had to delay the Special Enrollment Examination (SEE) tests for Enrolled Agents that was slated for May due to the coronavirus pandemic.
Prometric, the company that does SEE testing for the IRS has closed its testing centers in the US and Canada through May 31 because of the pandemic. Those who had tests scheduled in May will be contacted by the company to reschedule.
“If you have a SEE appointment scheduled in May, you should have received an email informing you that your appointment is cancelled,” the IRS website instructs. “A Prometric representative will try to contact you once by telephone to reschedule your appointment. If Prometric can’t reach you by telephone, they will reschedule your appointment and send you an email confirmation with your new appointment information.”
The IRS EA page recommends that testing candidates can call Prometric at 800.306.3926 or 443.751.4193 if the new date and time don’t work for them and to ensure rescheduling fees are waived. Those lines are open Monday – Friday 8 a.m. to 9 p.m. Eastern Time.
International testing is also on hold.
The EA web page also shows that the international testing window scheduled for June 15-29 has also been cancelled. International candidates can, however, schedule during the remaining windows, in August and November in 2020, and in February 2021.
The IRS stresses that all information about the examinations is subject to change “in the interest of ensuring the health, safety and well-being of SEE candidates as well as Prometric staff.”
Besides delaying examinations, the IRS has also decided to extend the two-year carryover period for SEE candidates. Generally, those who pass a part of the EA examination can carry over a passing score up to two years from the date they passed that part of the test. To give candidates more flexibility in testing during these uncertain times, the IRS has extended the carryover period from two years to three.
This applies to any examination parts that had not expired as of Feb. 29, 2020. Only those candidates who passed a part of the examination Feb. 29, 2020 or earlier, will now have three years from the date they passed a part of the examination to pass the remaining parts. For example, if a candidate passed Part 1 on Nov. 15, 2019, they now have until Nov. 15, 2022 to pass parts 2 and 3.
The IRS says SEE candidates with additional questions can call 800.306.3926 or 443.751.4193 for additional information.
– Story provided by TaxingSubjects.com
The Tax Place